OECD SKILLS STRATEGY FLANDERS

Diagnostic Workshop (15 May 2018) – Briefing Pack

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Table of contents

1. Better skills, better jobs, better lives............................................................................................3

2. The OECD Skills Strategy in Flanders............................................................................................4

3. Socio-economic context............................................................................................................................5

4. Challenges for the Skills System in Flanders.....................................................................................6

4.1. Developing a learning culture............................................................................................................7

4.2. Strengthening skills use in workplaces...........................................................................................8

4.3. Improving skills matches..................................................................................................................... 9

4.4. Strengthening skill governance and structures.........................................................................10

5.5. Improving the financing of education and training..................................................................11

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1. Better skills, better jobs, better lives

Skills are the new currency. Skills are central to the capacity of countries and people to thrive in an increasingly interconnected and rapidly changing world. Megatrends such as globalisation, the technological revolution (in particular digitalisation) and demographic change are reshaping work and social environments, generating a growing demand for higher levels of non-routine, cognitive skills, as well as new sets of skills. Skills are defined by the OECD as the bundle of knowledge, attributes and capacities that can be learned and that enable individuals to successfully and consistently perform an activity or task and can be built upon and extended through learning.

OECD Skills Strategy projects provide a strategic and comprehensive approach to assess countries’ skills challenges and build more effective skills systems. The OECD works collaboratively with countries to elaborate strategic plans for the future and develop policy responses that equip the population with the right bundles of skills required to achieve sustainable, inclusive growth, and to allow people to prosper in a rapidly evolving environment.

OECD Skills Strategy projects adopt a life cycle approach to ensure that people can continue to re-skill and up-skill throughout their lives, so that they can adjust to the rapid changes in the workplace and to ensure well-being and good social outcomes. This requires strengthening the skills system at three levels: governance, financing and information systems.

Improved governance systems require better coordination between different levels of Government, as well as with other stakeholders. The overall skills system is funded by many players within an often fragmented ecosystem, making essential a clear division of responsibilities and the right incentives. Well-developed information systems are also needed to assess the strengths and weaknesses of the skills system and evaluate the impact of policies.

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1. Better skills, better jobs, better lives

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2. The OECD Skills Strategy in Flanders

What is the OECD Skills Strategy?

The OECD Skills Strategy provides a framework for countries to analyse their strengths and weaknesses and find better ways to develop, activate and use skills to boost employment and economic growth while promoting social inclusion. It is designed to be cross-sectoral and involve a wide range of relevant stakeholders in two workshops.

What is the goal of the Skills Strategy in Flanders?

The Flemish Skills Strategy is a joint project between the OECD and the Flemish government with the aim to provide a strategic assessment of the skills system in Flanders.

The results will help build effective skills policies and strategies to meet Flanders’ future skill needs and to improve the match between supply and demand for skills. The project will reach beyond the identification of skills bottlenecks and will include a strong focus on implementation which requires co-ordination, a clear understanding of responsibilities, and ongoing dialogue among all stakeholders.

In discussion with the Flemish National Project Team, 5 priority skills areas have been identified: 1) developing a learning culture, 2) strengthening skills use in workplaces, 3) improving skills matches, 4) strengthening skill governance and structures, and 5) improving the financing of education and training.

Why is the Diagnostic Workshop being held?

The Diagnostic Workshop will be held on 15 May 2018 to hear the perspectives of a broad range of stakeholders on Flanders’ most important skills challenges, and to develop preliminary recommendations. This briefing pack is designed to provide all participants with a set of common information prior to the workshop.

What happens next?

A Good Practices workshop will be held 18 September 2018 to explore possible actions for the challenges identified in the Diagnostic Workshop. Moreover, this workshop which will be an opportunity to explore good practices to resolve the challenges identified. The final OECD Skills Strategy Diagnostic Report will be launched in January 2019. This event will help raise public awareness and garner broad-based support for future action.

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2. The Skills Strategy in Flanders

Project timeline

● 30 January 2018 - Skills Strategy Seminar (launch project

● 15 May 2018 - Diagnostic Workshop

● 18 September 2018 – Good Practices Workshop

● January 2019 - Launch of the OECD Skills Strategy Diagnostic Report for the Flanders

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3. Socio-economic context

Flanders has solid economic growth and productivity becomes increasingly importantFigure 3.1. Growth productivity and labour utilisation (2007=100) The Flemish economy has turned a corner. Economic

growth was lagging behind the OECD average after the economic crisis, but has accelerated in recent years. Year-to-year growth has risen above 2% in the last couple of years, and in 2016 the total economy was almost 250 billion Euros.

As in many other OECD countries, the working-age population in Flanders is shrinking, depressing the contribution of labour utilisation to economic growth. This means that productivity growth will be an even more important driver of economic growth in the future.

2007 2008 2009 2010 2011 2012 2013 2014 201596

97

98

99

100

101

102

103

Source: OECD (2018), Dataset: Regional Economy.

But the share of population which is inactive is relatively highFigure 3.2. Economic activity rate, selection of countries, 15-64 year-olds, 2016 The recession resulted in a significant drop in

employment, but in recent years the economy has regained strength and the number of jobs is increasing again.

However, where the employment rate is comparable with the OECD average in 2016, the share of population which is inactive is high in comparison with most OECD and EU countries. In 2016, 72% of the adult population was active (either unemployed or employed), where this share is 78% in the EU. There are also comparatively large differences in activity across population groups.Sw

itzer

land

Denm

ark

Swed

en

Austr

ia

Brus

sels

Euro

pean

Uni

on

Luxe

mbo

urg

Fran

ce

Flan

ders

Belg

ium

Wal

loni

a

50

55

60

65

70

75

80

85

90% of population

Source: Eurostat (2018), Regional Employment, LFS.

Well-being in Belgium is generally high compared to the OECD averageFigure 3.3. OECD Better Life Index

Belgians enjoy high well-being in many dimensions, notably work-life balance, health, education and civic engagement.

Income inequality after tax and transfers is comparatively low. Belgium has the lowest gender wage gap among the OECD countries

Income and wealthJobs and earnings

Housing

Work-Life balance

Health status

Education and skillsSocial connections

Civic engagement and governance

Environmental quality

Personal security

Subjective well-being

0246810

Belgium OECD

Note: Each well-being dimension is measured using 1-3 Better Life Indicators with equal weight, and are normalised by re-scaling to be from 0 (worst) to 10 (best).Source: OECD (2017), OECD Economic Surveys: Belgium 2017

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3. Socio-economic context

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4. Challenges for the Skills System in Flanders

The OECD Skills Strategy Scoreboard provides an overview of the general performance of Flanders’ skills system as compared with a selection of EU countries. It demonstrates that Flanders is performing comparatively well in most areas: the skills of youth are high, high educated and adults have skill levels above the OECD averages, the variation in skills performance is less severe than in most countries, and an innovative economy stimulates the activation and use of skills in the workplace.

However, there are several areas where Flanders’ performance can be improved: adult learning in Flanders can be strengthened, skills are not improving as fast as in many other countries, and there are concerns about the inclusiveness of skills in society (e.g. the differences between skills of low and high educated). In addition, despite a strong supply of skills in the system, the demand in the labour market and the use of these skills at work and daily life can be improved.

Figure 4.1. Skills Strategy Scoreboard, Flanders and selected European countries

Note: These summary indicators are calculated as a simple average of a range of underlying indicators. All underlying indicators have been normalised in a way which implies that a higher value and being among the “top 20%” reflects better performance. "x" indicates insufficient available data for underlying indicators

Based on a preliminary analysis of the Flemish skills system by the OECD Skills Strategy in discussion with the Flemish National Project Team, 5 priority skills area have been identified for Flanders:

1. Developing a learning culture2. Strengthening skills use in workplaces3. Improving skills matches4. Strengthening skill governance and structures5. Improving the financing of education and training

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4. Challenges for the Skills System in Flanders

4.1. Developing a learning culture

Creating a culture of lifelong learning is becoming increasingly importantFigure 4.2. Socio-demographic adjusted differences in literacy While average skill levels are comparatively high, Flanders

does face challenges with respect to the socio-demographic distribution of skills. This includes relatively large differences between low- and high educated, older- and younger generations, and individuals with a native and foreign background. Higher participation in learning among adults from lower performing groups could help to reduce these differences.

It is forecasted that jobs in Flanders in the future will be concentrated in high- and medium-skilled jobs, with an increased demand for occupations requiring high levels of skills. A culture of lifelong learning could support adults in adjusting to this change in skills demand.

Age (25-34 - 55-65)

Immigrant (native - foreign)

Education (Tertiary - lower than upper

sec).

Parents' Education (tertiary parents - less than upper

sec. parents)

0

10

20

30

40

50

60

Score-points

Source: OECD (2016), Skills Matter: Further Results from the Survey of Adult Skills, Figure 3.1. http://dx.doi.org/10.1787/888933365979.

But participation in adult education could be expandedFigure 4.3. Participation in adult education, 25-64 year-olds, by type, 2012/2015 Participation in adult education is not yet on the level

of other OECD countries with comparable skill levels. Participation in non-formal and formal learning in the 12 months preceding the Survey of Adult Skills is only comparable with the OECD average.

In Flanders, 51% of adults were not involved in adult education, compared with 32-42% in other high performing OECD countries, such as Finland, Denmark, the Netherlands and Canada.0

10

20

30

40

50

60

70%

Source: OECD Survey of Adult Skills database (PIAAC) (2012, ‘15).

Flemish adults are comparatively unwilling to participate and face severe obstaclesFigure 4.4. Willingness to participate in formal and/or non-formal education, 25-64 year-olds, 2012/2015 Together with the Netherlands, Japan and Korea,

Flanders ranks near the bottom in terms of workers’ readiness to learn. This is reflected in a large share of the population not willing to participate in adult education (82%, compared with 76% in the OECD (PIAAC)).

In addition, even when adults are willing to participate, they face obstacles. Work, childcare and family responsibilities are more often a reason to not participate in adult education in Flanders than in other OECD countries.

0102030405060708090

%

Source: OECD Survey of Adult Skills database (PIAAC) (2012, ‘15).

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Priority 1: Developing a learning culture

4.2. Improving skills matches

Productivity can be raised by reducing mismatchFigure 4.5. Potential gains from reducing skill mismatch

Recent OECD research highlights that countries may make large gains in productivity by reducing skills mismatches.

While Flanders has a comparatively low rate of skills mismatch (in terms of qualifications, skills, and field of study), it still could potentially reap positive economic gains from reducing it further. Allocative efficiency that lowers literacy mismatch can result in a 2.6% productivity gain in Flanders.

012345678

%

Note: Simulated gains to allocative efficiency from lowering skill mismatch (literacy) to the best practice.Source: M. Adalet McGowan and D. Andrews (2015), "Labour Market Mismatch and Labour Productivity: Evidence from PIAAC Data".

There are labour shortages in many technical occupations, but enrolment in STEM-studies is lagging behindFigure 4.6. Graduates STEM studies in tertiary education, per 1000 of population aged 20-29, 2014 Flanders has a number of bottleneck occupations and hard-

to-fill vacancies. This concerns in particular technical occupations, and due to demographic changes, these shortages are expected to become larger.

Despite a strong demand for technical skills, studies such as Science, Technology, Engineering and Math (STEM) are not as popular as in other EU-countries.

0

5

10

15

20

25

Source: Eurostat, Education administrative data; STEM Monitor 2017

Skills of individuals outside the labour market could be utilised more efficientlyFigure 4.7. Long-term unemployment and NEETs, 2016

Skills of individuals outside the labour market could be utilised more efficiently. The long-term unemployment rate in Flanders is high at 41.3%, while the OECD average is 30.5%. In addition, 7.5 % of 15-24 year-olds are neither in employment nor in education and training (NEET) in 2016.

0 20 40 60 80

SwedenDenmark

OECD averageAustria

LuxembourgGermanyFlanders

NetherlandsFrance

WalloniaBrussels

% of unemployed

A. Long-term unemployment

0 5 10 15 20

NetherlandsSweden

GermanyFlanders

AustriaDenmark

LuxembourgEU average

FranceWalloniaBrussels

%

B. NEETs, 15-24 year-olds

Source: OECD (2017), Long-term unemployment rate (indicator). doi: 10.1787/76471ad5-en; Eurostat (2018) Regional statistics.

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Priority 2: Improving skills matches

4.3. Strengthening skills use in workplaces

Skills are not used to their full potential in the workplaceFigure 4.8. Use of numeracy skills and numeracy proficiency Despite having high levels of proficiency in literacy and

numeracy, these skills are not used to their full potential in the workplace. This is particularly a concern for the use of numeracy skills; Flanders ranks near the bottom of the OECD in terms of the use in numeracy skills at work.

The large gap between skill levels and skill use suggests investment in developing skills could be wasted.

2.3

2.35

2.4

2.45

2.5

2.55

2.6

250255260265270275280285290

Skills-use indica-tor

Proficiency score

Note: Skills use indicators are between 1 "Never" and 5 "Every day".Source: OECD Survey of Adult Skills database (PIAAC) (2012, ‘15).

However, activities that stimulate skills use are strongly adopted in FlandersFigure 4.9. Share of jobs and index HPWP

Flemish firms are already adopting High performance work practices (HPWP) (both organisational and managerial) at a higher rate than their counterparts in most other countries. About 37% of jobs adopted these practices, compared with 26% in the OECD.

Rising business investment in a range of intangible assets – such as organisational capital, computerised information, design, and research and development (R&D) – is positively associated with productivity and competitiveness. For R&D, the expenditure relative to GDP is currently above average in Flanders.

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1015202530354045

2.4

2.5

2.6

2.7

2.8

2.9

3.0% Index

Source: OECD (2016a), OECD Employment Outlook 2016, OECD Publishing, Paris, http://dx.doi.org/10.1787/empl_outlook-2016-en.

Some task-based skills could be used more often by workersFigure 4.10. Workers' task-based skills, 2012/2015

The use of skills for specific tasks of workers can also be intensified in Flanders. Where self-organisation, ICT, managing, and communication skills are more often used on the job than in the average OECD country, the use of STEM, management and accounting skills are below the average.

Marketing and accounting skills

STEM skills

Managing and communication skills

ICT skills

Self-organisation skills

0.45 0.5 0.55 0.6

Note: A higher score is associated with a higher frequency of performing these tasks on the job. For method, see figure 3.3 in source.Source: OECD (2017), Skills Outlook, http://dx.doi.org/10.1787/9789264273351-en.

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Priority 3: Strengthening skills use in workplaces

4.4. Strengthening skill governance and structures

The relevance of governance and partnerships for skills systemsFigure 4.11. Relevant stakeholders for skills systems The Flemish’ governance system - the process where

political decisions are made and where those decisions are enforced – is characterized by a common striving for broad consensus on important issues, within both the political community and society as a whole.

Responsibility for skills development, activation and use are shared by all levels of government, social partners, enterprises and individuals.

Belgium is comparatively strong in engaging stakeholders when developing regulationsFigure 4.12. Stakeholder engagement in developing regulations

Stakeholder engagement is a crucial element in the development and implementation of effective policies. According to the composite indicator on stakeholder involvement from the OECD Indicators of Regulatory Policy and Governance (iREG) Belgium is near the top of the OECD ranking in 2014. Belgium is performing above average in improving all practices relevant for regulatory governance, including methodology (methods and tools) and systemic adoption (existence of formal requirements).

However, Belgium is performing below average in oversight and quality control (monitoring and evaluation) and transparency (open government).

Denmark

Belgium

Germany

OECD average

Sweden

France

Luxembourg

Netherlands

Austria

0

0.5

1

1.5

2

2.5

Source: OECD (2017), Government at a Glance 2017, Figure 1.7 and 8.1. Stakeholder engagement in developing regulations, 2014.

Governance in Belgium can be improvedFigure 4.13. Executive capacity, SGI-score, 2017

According to the Sustainable Governance Indicators (SGI) of the Bertelsmann Stiftung, national governance in Belgium can be improved, particularly the executive capacity, which is near the bottom of the ranking of OECD countries. The lack of a formal regulatory impact assessment mechanism, comparatively weak organizational reform, and insufficient policy communication results in a low average grade.

Evidence-based Instruments

Organizational Reform

Policy Communication

Societal Consultation

Strategic Capacity

Adaptability

Implementation

Interministerial Coordination

1 2 3 4 5 6 7 8 9Source: Bertelsmann Stiftung (2018), Sustainable Governance Indicators (SGI), http://www.sgi-network.org/2017/.

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Priority 4: Strengthening skill governance and structures

4.5. Improving the financing of education and training

Flanders implemented several financial incentives to promote adult learningFigure 4.14. Types of financial incentives for individuals and firms to support participation in adult learning In Flanders, several financial incentives have been

implemented to promote adult learning. For the individual, this involves training vouchers, career guidance vouchers, individual vocational training and limited or no entrance fees for adult education.

For small or medium sized firms there is financial aid available to provide training, and firms investing in the framework of a strategic transformation project can also receive financial support.

Employers cover a relatively large share of expenditures, but especially for the high skilledFigure 4.15. % of employees receiving employer financial support for education or training, by skills level, 25 to 64 year-olds For two thirds of participants, the employer covered

all the expenditures related to education and training. As a result, only for a relatively small share of Flemish adults report that a lack of employer’s support is the reason that they do not participate.

Still, for 1 in 5 participants, the employer did not pay any of the costs. Low-skilled employees are much less likely to report receiving employer support both relative to domestic high-skilled workers and to the OECD average for low-skilled workers.40%

45%

50%

55%

60%

65%

70%

75%

80%

Source: OECD Survey of Adult Skills database (PIAAC) (2012, ‘15).

The cost of adult education is rarely a reason to not participateFigure 4.16. Reasons for not participating, 2012/2015 For only 1 in 20 adults who are willing to participate

in adult education, the cost of education is the main reason for not participating. This is a relatively small share compared to the EU average of 15%, and in Flanders mainly time constraints due to work, childcare or family responsibilities appear to be the main reason to not participate in adult education.

Did not have the prerequisites

Something unexpected came up

Too expensive

Lack of employer’s support

Other

Inconvenient time or place

Childcare, family responsibilities

Too busy at work

0 5 10 15 20 25 30 35%Source: OECD (2017), Education at a Glance, Table C6.3a.

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Priority 5: Improving the financing of education and training

For more information:

see www.oecd.org/skills for free country reports check out our blogposts on oecdeducationtoday.blogspot.fr/ follow us @OECDEduSkills and #OECDskills

Or Contact: Montserrat Gomendio, Head of the OECD Centre for Skills and Deputy Director of the OECD

Directorate for Education and Skills at montserrat.gomendio@oecd.org Dirk Van Damme, Head of Division, Skills Beyond School at dirk.vandamme@oecd.org Andrew Bell, Team Leader, National Skills Strategy projects at andrew.bell@oecd.org

Sources:

OECD (2017), Education at a Glance 2017: OECD Indicators, OECD Publishing, Paris.http://dx.doi.org/10.1787/eag-2017-en

OECD (2017), Education Policy Outlook Belgium, OECD Publishing, Paris.http://www.oecd.org/edu/Education-Policy-Outlook-Country-Profile-Belgium.pdf

OECD (2017), OECD Economic Surveys: Belgium, OECD Publishing, Paris.http://www.oecd.org/belgium/economic-survey-belgium.htm

OECD (2016), Boosting skills for Greener Jobs in Flanders, OECD LEED, Paris.https://www.oecd.org/cfe/leed/Boosting-skills-for-greener-jobs-Flanders-FINAL.pdf

OECD (2016), PISA 2015 Results (Volume I): Excellence and Equity in Education, PISA, OECD Publishing, Paris. http://dx.doi.org/10.1787/9789264266490-en.

OECD (2016), Skills matter; Further results from the Survey of Adult Skills, OECD Publishing, Paris.http://www.oecd.org/skills/skills-matter-9789264258051-en.htm

OECD (2015), Employment and Skills Strategies in Flanders, Belgium, OECD Local Job Creation, Publishing. http://dx.doi.org/10.1787/9789264228740-en

OECD (2012), Survey of Adult Skills; first results; Country Note Flanders. http://www.oecd.org/skills/piaac/Country%20note%20-%20Flanders.pdf

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Links and sources